The West Indian Company Limited (WICO) has yet to convince lawmakers that it is unable to fulfill its PILOT – Payment in Lieu of Taxes – owed to the Virgin Islands government. This is the second time this year that the company outlined these concerns.

On Friday, WICO Acting President and CEO Anthony Ottley admitted to members of the Senate Budget, Appropriations and Finance Committee that PILOT’s “currently exceeding ten million has been an embarrassment to the company and has become a serious problem. concern during our audits. WICO last paid its 2018 PILOT in 2019, and since then, “the debt has had a detrimental effect on our credit rating and our ability to borrow from financial institutions.”

He said WICO had been struggling to pay its PILOT for approximately eighteen years, with its finances affected during that time by natural disasters, the 2007-2010 recession, the Covid-19 pandemic and, notably, the development of the Crown Bay wharf, which resulted in the “transfer of a significant number of ship calls”. Additionally, Mr. Ottley said, “the continued diversion of head tax revenue further exacerbates our inability to meet our annual PILOT obligation for several years.”

WICO is now on a mission to get its PILOT debt canceled. In March, the CEO suggested a PILOT calculated at 5% of revenue and recognized the need to explore new revenue streams. Now, in December, Mr. Ottley says there have been “miscalculations by previous legislative bodies.” WICO’s annual PILOT used to be $1 million. After Crown Bay opened, that amount was reduced to $700,000, but Mr Ottley argued “the dollar reduction did not accurately reflect our losses”. This “miscalculation,” he suggested, “resulted in WICO’s inability to complete its PILOT.”

The West Indian Company Limited therefore offered “recommendations to resolve the pilot conundrum, which include waiving the current balance owed and future obligations until WICO is on more stable financial footing.”

“This is a difficult question for me,” admitted committee chairwoman Senator Donna Frett-Gregory. After reviewing WICO’s finances, she said, “I still don’t understand why WICO is unable to pay its PILOT to the people of the Virgin Islands. » According to his interpretation, WICO maintains $3.5 million in annual profits, part of which could be used to pay the PILOT. “You can all pay this bill with your eyes closed,” she said.

The PMOI, however, argued that much of its finances are tied up in reserves, loan repayments and bonds. Frett-Gregory is not convinced. “You have not proven that you are incapable of paying the government the $700,000 PILOT,” she told Mr Ottley. The finance chairman favored the idea of ​​canceling PILOT payments accrued during the Covid-19 pandemic, but balked at sweeping debt cancellation. “It would be very irresponsible of me as a leader… It’s not something I can contemplate,” she said.

Sen. Novelle Francis also seemed baffled by WICO’s suggestion. “There is not even room for negotiation here. You are simply saying to erase or carry over the entire amount,” the Senate President remarked. With the Governor’s Office covering part of WIPO’s expenses for the Catherineberg estate, Francis argued that WIPO should be able to pay at least part of PILOT.

“Our intention is to pay, but first we have to be able to make money and have the funds to pay for it,” Mr. Ottley told lawmakers. Senator Frett-Gregory remained unmoved. “We hope to receive a check for 2024,” she told Mr Ottley. You must all send a check to the Ministry of Finance. Sellers are not paid in this territory.

His reservations were shared by Senator Ray Fonseca. “I don’t see where I could ever approve or vote for approval to reduce or pardon your PILOT,” he said bluntly. “We are waiting for this money.” Mr. Fonseca went further, calling WICO “a poorly managed company that needs to make major changes.” This prompted Mr Ottley to later express outrage at Mr Fonseca’s assessment of the entity.

Despite WICO’s best efforts to defend its recommendations, Senator Frett-Gregory has been resolute in her demands on behalf of the GVI. “Write a check today. It’s Christmas,” she said. “Write the check so we can pay our suppliers. I’m as serious as I sit here.